Visa Agrees to Acquire Visa Europe, GE Completes Alstom Units Purchase

Mukesh Buch
02 Nov, 2015
New York City

Visa profit soared and agreed to acquire Visa Europe for $23.4 billion. GE completed acquisition of two units from Alstom for $10.6 billion. Cardinal Health net and revenues soared. Clorox net surged. Estee Lauder jumped on positive outlook. Ecolab net tumbled. Sysco net plunged.

[R]12:40 PM New York – Visa profit soared and agreed to acquire Visa Europe for $23.4 billion. GE completed acquisition of two units from Alstom for $10.6 billion. Cardinal Health net and revenues soared. Clorox net surged. Estee Lauder jumped on positive outlook. Ecolab net tumbled. Sysco net plunged.[/R]

Tollbooth Index edged down 0.56 to 10,949.46.

Earnings Review

Cardinal Health Inc ((CAH)) soared 4.4% or $3.65 to $85.93 after the healthcare services provider said revenues in the first-quarter ending in September surged 17% from a year ago to $28.1 billion.

Net income in the quarter jumped 44% to $383 million or $1.15 per diluted share compared to $266 million or 78 cents per share from the same quarter last year.

Cardinal Health lifted earnings per share estimate for the fiscal 2016 to $5.15 to $5.35 from the previous guidance between $4.85 and $5.05.

Clorox Co ((CLX)) advanced 3.9% or $4.71 to $126.65 after the household products maker stated sales in the first-quarter ending in September rose 3% from a year ago to $1.39 billion.

Net income in the quarter soared 192% to $172 million or $1.31 per diluted share compared to $90 million or 68 cents per share from the same quarter last year.

Estee Lauder Companies Inc ((EL)) soared 6.9% or $5.56 to $86.20 after the makeup, fragrance and hair care products maker reported revenues in the first-quarter ending in September jumped 8% from a year ago to $2.83 billion.

Net income in the quarter surged 36% to $309.3 million or 82 cents per diluted share compared to $228.1 million or 59 cents per share from the same quarter last year.

The company forecasted net sales for the second-quarter to increase between 6% and 7% and diluted earnings per share between $1.04 and $1.08.

For the year, Estee Lauder estimated net sales to grow between 8% and 10% and diluted earnings per share in the range of $3.10 to $3.17.

Ecolab Inc ((ECL)) declined 4% or $4.85 to $115.50 after the water, hygiene and energy services provider reported revenues in the third-quarter ending in September slumped 6.5% from a year ago to $3.45 billion.

Net income in the quarter tumbled 29% to $257.8 million or 86 cents per diluted share compared to $364.9 million or $1.19 per share from the same quarter last year.

Ecolab forecasted earnings per share for the fourth-quarter in the range of $1.20 to $1.30, an increase of 8% from in the same period of a year ago.

For the year, the company lifted earnings per share estimate between $4.35 and $4.45 per share from the earlier estimated range of $4.45 to $4.60.

General Electric Company ((GE)) rose 28 cents to $29.20 after the diversified conglomerate agreed to acquire power and grid businesses of France-based rail transport systems operator Alstom for about $10.6 billion or €9.7 billion.

Today, GE said it completed the sale of its rail signaling unit to Alstom for about $800 million.

Loews Corporation ((L)) gained 1.7% or 62 cents to $37.05 after the property and casualty insurance provider total revenues in the third-quarter ending in September plunged 9.9% from a year ago to $3.17 billion.

Net income in the quarter tumbled 12.5% to $182 million or 50 cents per diluted share compared to $208 million or 55 cents per share from the same quarter last year.

Sysco Corporation ((SYS)) slipped 1.8% or 73 cents to $40.52 after the food products distributor said revenues in the first-quarter ending on September 26 rose 0.9% from a year ago to $12.6 billion.

Net income in the quarter plunged 12.3% to $244.4 million or 41 cents per diluted share compared to $278.8 million or 47 cents per share from the same quarter last year.

Visa Inc ((V)) dropped 2.9% or $2.32 to $75.26 after the credit cards services provider reported revenues in the fourth-quarter ending in September jumped 10.5% from a year ago to $3.57 billion.

Net income in the quarter soared 41.1% to $1.51 billion or 62 cents per diluted share compared to $1.07 billion or 43 cents per share from the same quarter last year.

Separately today, Visa agreed to acquire its European unit Visa Europe for about $23.4 billion or €21.2 billion in a cash-and-stock.

The transaction is expected to close in the third-quarter of fiscal 2016.